ANNUAL FINANCIAL REPORT ON OPERATIONS AT 31 MARCH 2024

This document does not comply with the ESEF format required by the European Commission Delegated Regulation 2019/815 and is therefore an unofficial version of the Annual Financial Report at 31 March 2024. The official document in ESEF format is published and filed according to legal requirements.

PIQUADRO GROUP

ANNUAL FINANCIAL REPORT ON OPERATIONS AT 31 MARCH 2024 page 1

REPORT ON OPERATIONS AT 31 MARCH 2024 page 10

CONSOLIDATED FINANCIAL STATEMENTS AT 31 MARCH 2024 page 50

NOTES T0 THE CONSOLIDATED FINANCIAL STATEMENTS T 31 MARCH 2024 page 57

CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ARTICLE 81-TER OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999,

AS AMENDED AND SUPPLEMENTED page 108

INDEPENDENT AUDITORS' REPORT AT 31 MARCH 2024 page 109

PIQUADRO SPA

PIQUADRO S.P.A. FINANCIAL STATEMENTS AT 31 MARCH 2024 page 115 NOTES T0 THE PIQUADRO S.P.A. FINANCIAL STATEMENTS AT 31 MARCH 2024 page 126 CERTIFICATION OF THE FINANCIAL STATEMENTS PURSUANT TO ARTICLE 81-TER OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999, AS AMENDED AND SUPPLEMENTED page 177 HIGHLIGHTS OF FINANCIAL STATEMENTS OF SUBSIDIARIES AT 31 MARCH 2024 page 178 BOARD OF STATUTORY AUDITORS' REPORT TO THE SHAREHOLDERS' MEETING AT 31 MARCH 2024 page 183

INDEPENDENT AUDITORS' REPORT AT 31 MARCH 2024 page 198

PROPOSALS TO THE SHAREHOLDERS' MEETING page 205

Corporate details

Piquadro S.p.A.

Registered office: Località Sassuriano, 246 - 40041 Silla di Gaggio Montano (Province of Bologna)

Subscribed and paid-up Share Capital: Euro 1,000,000

Bologna Register of Companies, Tax Code and VAT no. 02554531208

PIQUADRO

Piquadro S.p.A. Registered office: Località Sassuriano, 246 - 40041 Silla di Gaggio Montano – Bologna, Italy – Fully paid-up Share Capital: Euro 1,000,000 - Bologna Register of Companies no. 02554531208 – www.piquadro.com

NOTICE OF CALL OF THE ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETINGS

The persons entitled to attend and exercise voting rights are summoned to the Ordinary and Extraordinary Shareholders' Meetings of Piquadro S.p.A., exclusively through the designated representative, as stated below, on first call on 23 July 2024 at 11:00 a.m., at the registered office, Località Sassuriano, 246, Silla di Gaggio Montano (Province of Bologna), and, if required, on second call, on 24 July 2024, in the same place and at the same time, in order to discuss and resolve on the following

Agenda

Ordinary session 1 Financial Statements at 31 March 2024: Directors' Report on Operations, Board of Statutory Auditors' Report, and Independent Auditors' Report, Presentation of the Non-Financial Disclosure prepared pursuant to Legislative Decree no. 254/2016.

1.1 approval of the financial statements and presentation of the consolidated financial statements relating to the financial year ended 31 March 2024; Board of Directors' Report on operations; Independent Auditors' Report; Board of Statutory Auditors' Report;

1.2 proposal for allocation of the profit for the period; relevant and consequent resolutions.

Presentation of the Report on remuneration and fees paid: 2.1 binding resolution on "Section I" concerning the remuneration policy prepared pursuant to Article 123-ter, paragraph 3-bis, of Legislative Decree no. 58/1998;

2.2. resolutions on "Section II" of the Report concerning fees paid, pursuant to Article 123-ter, paragraph 6, of Legislative Decree no. 58/1998; relevant and consequent resolutions.

Proposal for authorisation for the purchase and sale of treasury shares; relevant and consequent resolutions.
Appointment of a Director pursuant to Article 2386, first paragraph of the Italian Civil Code, and Article 17.3 of the By-Laws.

Extraordinary session

Amendment to some paragraphs of Articles 12, 13 and 20 of the by-laws; relevant and consequent resolutions.

In consideration of the option granted by Law no. 21 of 5 March 2024, which extended until 31 December 2024 the possibility of applying the provisions laid down in Article 106 of Decree Law no. 18 of 17 March 2020, as converted into Law no. 27 of 24 April 2020, the Shareholders' attendance at the Shareholders' Meeting, and the exercise of voting rights may be carried out exclusively by granting the appropriate proxy to the Designated Representative, as defined below, it being understood that shareholders or proxies other than the aforementioned Designated Representative will not be allowed access to the meeting premises. With regard to the attendance at Shareholders' Meetings on the part of directors, statutory auditors, representatives of the audit firm, and of the Designated Representative, the Company shall use such technical means as may be appropriate to

enable them to attend the meetings, even via tele-or video-conference. Share capital and voting rights

The current share capital of Piquadro S.p.A., subscribed and paid up, is Euro 1,000,000, and is divided into no. 50,000,000 ordinary shares of no par value; each ordinary share is entitled to one vote at the ordinary and extraordinary shareholders' meetings of the Company.

As at 7 June 2024 Company held no. 2,751,726 treasury shares.

All information about the composition of the share capital is available in the Investor Relations section on the Company's website at the address: www.piquadro.com. Attendance at the Shareholders' Meeting

Pursuant to law, Article 13 of the Company's By-Laws, and Article 83-sexies of Legislative Decree No. 58 of 24 February 1998, as amended and supplemented ("TUF", Testo Unico della Finanza, Consolidated Act on Finance), the right to attend the Shareholders' Meeting, and to exercise voting rights, is certified by a special notice to be given to the Company by an authorised intermediary, pursuant to law, and according to its accounting records, in favour of the person who is entitled to vote on the basis of the records relating to the end of the accounting session of the seventh open-market day prior to the date set for the Shareholders' Meeting on first call, falling on 12 July 2024 (record date). Those who will become holders of shares after that date will not be entitled to attend and vote at the Shareholders' Meeting. Therefore, the credit and debit entries entered in the accounts after this date are not relevant for the purposes of the

right to exercise voting rights at the Shareholders' Meeting. The abovementioned notices shall be sent to the Company by the intermediary within the time limits set out by the regulations in force, i.e. by the end of the third open-market day prior to the date set for the Shareholders' Meeting (i.e. 18 July 2024). This provision shall apply without prejudice to the right to attend the meeting and to vote in the event of the notices being received by the Company after the time limits specified, provided they are received by the beginning of the meeting's proceedings. The attendance by the shareholders at the Shareholders' Meeting is regulated by the relevant laws and regulations.

Representation at Shareholders' Meetings In accordance with the provisions of the aforementioned Article 106 of Decree Law no. 18 of 17 March 2020, as amended, persons who are entitled to vote may be represented exclusively through the Designated Representative pursuant to Article 135-undecies of the TUF, without physical participation by the shareholders, by giving proxy and voting instructions to Monte Titoli S.p.A. (the "Designated Representative"), with registered office in Milan, according to the procedures set out in current regulations. The members of the corporate bodies and the Designated Representative, as well as the representatives of the audit firm, shall instead be assured of the opportunity to attend the Shareholders' Meeting by remote means of communication. The function of secretary may also be discharged in the same manner.

Granting the proxy to the Designated Representative does not entail any expenses for the appointing party (except for postage expenses, if any).

The proxy must include voting instructions on all or part of the proposals on the agenda, and is only effective for the proposals in relation to which voting instructions have been given.

The proxy (referred to in the specific form available on the Company's website at the address: www.piquadro.com, in the Section on Investor Relations, at the registered office) with voting instructions shall be received, accompanied by a copy of a current and valid identity document of the appointing shareholder or, if the appointing shareholder is a legal person, of the pro-tempore legal representative, or of any other person who is duly empowered, together with such documents as are appropriate to certify their title and powers, and sent to the Designated Representative, by the end of the second open-market day prior to the date set for the Shareholders' Meeting on first or even on second call (i.e. by 19 July 2024 and by 20 July 2024, respectively), according to the following alternative procedures: (i) transmission of a computer-generated copy (PDF) to the certified email address [email protected] (subject: "Proxy to the Designated Representative – Piquadro Shareholders' Meeting 2024") from their certified email account (or, if absent, from their ordinary e-mail account, in which case the proxy with voting instructions must be signed with a qualified or digital electronic signature); (ii) transmission of the original document, by courier or registered letter with return receipt, to the address of Monte Titoli S.p.A., for the attention of Ufficio Register & AGM Services, Piazza degli Affari no. 6, 20123 Milan (Ref. "Proxy to the Designated Representative – Piquadro Shareholders' Meeting 2024"), anticipating a computer-generated copy (PDF) by ordinary email to the following address: [email protected] (subject: "Proxy for Piquadro Shareholders' Meeting 2024").

The proxy and the voting instructions may be revoked within the same time limits referred to above.

The shares for which the proxy has been granted, even partially, are included in the calculation for the purposes of duly establishing the Shareholders' Meeting; in relation to the proposals for which no voting instructions have been given, the shares are not included in the calculation for the purposes of setting out the majority and the capital quota required for the approval of resolutions.

Without prejudice to the need for a proxy to be given to the Designated Representative, the latter may be granted proxies or sub-proxies pursuant to Article 135-novies of the TUF, even notwithstanding the provisions of Article 135-undecies, paragraph 4, of the TUF. For the aforesaid purposes, the proxy form, which is available on the Company's website, may be used by following the procedures and according to the time limits set out therein, i.e. by 6:00 p.m. of the day prior to the date set for the Shareholders' Meeting (and in any case by the start of the meeting proceedings).

Additions to the agenda and presentation of new proposals for resolution

Pursuant to Article 126-bis of the TUF, the Shareholders who represent, also jointly, at least a fortieth of the share capital, may ask, within 10 days of the publication of this notice (i.e. by 30 June 2024), to make additions to the list of issues to be discussed, specifying the additional proposed issues in the request, or submit proposals for resolution on issues that are already on the agenda.

The questions, together with the certification proving the ownership of the shareholding, shall be sent in writing, by registered letter with return receipt, to the registered office or by email sent to the address: [email protected]. The applicant shareholders shall deliver, by the time limit set out for the submission of request for additions, a report to the Board of Directors on the proposed issues for discussion or state the reasons for any additional proposal for resolution submitted on issues that are already on the agenda.

Additions to the agenda are not allowed for issues on which the Shareholders' Meeting resolves, pursuant to law, at the proposal of the Board of Directors or based on a project or report it has prepared, other than the reports that are usually prepared by the Board of Directors on the issues on the agenda.

With reference to the limits, the procedures and/or the time limits for these additions, reference is made to the current laws and regulations and Article 12.5 of the Company's By-Laws. All additions to the list of matters to be discussed at the Shareholders' Meeting, or the presentation of additional proposals for resolution on those issues that are already on the Agenda shall be notified, in the same forms as those prescribed for the publication of this notice of call, at least fifteen days before that set for the Shareholders' Meeting. All reports on additional proposals for resolution on those issues that are already on the Agenda shall be made available to the general public

according to the procedures set out in Article 125-ter, paragraph 1, of the TUF at the same time as the publication of the notice of the presentation, accompanied by the Board of Directors' evaluations (if any). In consideration of the fact that attendance at Shareholders' Meeting is allowed exclusively through the Designated Representative, all Shareholders entitled to attend Shareholders' Meetings, and to exercise voting rights, who intend to submit individual proposals for resolution and voting with regard to the fourth issue on the Agenda, concerning the "Appointment of a Director pursuant to Article 2386, first paragraph, of the Italian Civil Code, and Article 17.3 of the By-Laws", shall submit them by 8 July 2024 (the 15th day before the Shareholders' Meeting). These proposals shall be published on 10 July 2024 on the Company's website, as well as with the authorised storage system "eMarket Storage, which can be accessed from the address in order to enable those entitled to vote to give their opinion in a conscious manner, even by taking account of such new proposals, and enable the Designated Representative to collect voting instructions, even possibly on such proposals.

Questions

Pursuant to Article 127-ter of the TUF, the Shareholders may make questions on the issues on the agenda, even before the Shareholders' Meeting, provided this occurs by the record date (i.e. by 12 July 2024), by sending them to the Company's registered office by registered letter, or by e-mail to the e-mail address [email protected]; the questions shall be accompanied by an appropriate notice issued by the authorised intermediary, proving the entitlement to exercise the voting right.

The time limit to submit the aforesaid questions is the seventh open-market day prior to the date set for the Shareholders' Meeting, falling on 12 July 2024.

The questions submitted by the aforesaid time limit shall receive a feedback at least by 12:00 p.m. of three days before the Shareholders' Meeting (i.e. on 20 July 2024), even through the publication in a specific section of the Company's website.

No answer shall be provided, even at Shareholders' Meetings, to questions posed before it, if the required information is made already available by the Company in a "Question and Answer" format in the Investor Relations Section on the Company's website at the address www.piquadro.com, or if the answer is already published in the same section. The Company may provide a single answer to questions having the same content. No procedures are envisaged for voting by mail or electronic means.

Documentation

The Company's By-Laws, whose current text is available to the Shareholders at the registered office, may be perused on the Company's website www.piquadro.com, in the Section on Investor Relations.

The documentation relating to the issues on the agenda required by the current regulations, the full texts of the proposed resolutions, together with the explanatory reports required by the current regulations, and any other information referred to in Article 125-quater of the TUF, are made available to the public at the registered office, and published on the Company's website at the address www.piquadro.com, in the Section on Investor Relations, and at the authorised storage system of "eMarket STORAGE", which can be accessed from the address: , within the time limits set out by law, and according to the procedures envisaged by the current regulations.

The Annual Financial Report, including the draft financial statements at 31 March 2024, the consolidated financial statements of the Piquadro Group, the report on operations, and the certification required by Article 154-bis of Legislative Decree no. 58/1998, and the Board of Statutory Auditors' and Independent Auditors' reports, as well as all tables summarising the financial statements of subsidiaries and associates, and the Non-Financial Disclosure at 31 March 2024, shall be made available to the Shareholders and the general public, at the registered office, and on the Company's website at the address. www.piquadro.com, in the Section on Investor Relations, and at the authorised storage system of "eMarket STORAGE", which can be accessed from the address: , within the time limits set out by law and according to the procedures envisaged by the current regulations. The Shareholders are entitled to obtain a copy thereof.

Silla di Gaggio Montano, 20 June 2024

The extract of this notice of call will be also published by the Company in the newspaper Il Giornale on 20 June 2024.

The Chairman of the Board of Directors Marco Palmieri

REPORT ON OPERATIONS AT 31 MARCH 2024

Introduction

This Report on Operations (or the "Report") relates to the consolidated and separate financial statements of Piquadro S.p.A. (hereinafter also referred to as the "Company" or the "Parent Company") and its Subsidiaries ("Piquadro Group" or the "Group") at 31 March 2024, as prepared in accordance with IAS/IFRS ("International Accounting Standards" and "International Financial Reporting Standards") issued by the International Accounting Standards Board (IASB) and endorsed by the European Commission and supplemented by the related interpretations issued by the International Financial Reporting Standards Interpretations Committee (IFRS IC), which was previously named Standing Interpretations Committee (SIC), as well as with the orders enacted in the implementation of Article 9 of Legislative Decree no. 38/2005.

The Report must be read together with the Financial Statements and the related explanatory Notes, which make up the financial statements relating to the financial year 1 April 2023 – 31 March 2024 (the "FY 2023/2024").

The financial year under consideration is compared to the data for the 2022/2023 financial year (the "FY 2022/2023") which relates to the period from 1 April 2022 to 31 March 2023.

Except as otherwise indicated, in this Report the accounting balances are shown in thousands of Euro, in order to facilitate its reading and to improve its clarity.

CORPORATE BODIES HOLDING OFFICE AT 31 MARCH 2024

BOARD OF DIRECTORS

(holding office for three years until the date of the Shareholders' Meeting called to approve the financial statements at 31 March 2025)

Marco Palmieri	Chairman and CEO
Pierpaolo Palmieri	Managing director
Roberto Trotta	Managing director
Tommaso Palmieri*	Non-executive Director
Catia Cesari	Independent non-executive Director
Barbara Falcomer	Independent non-executive Director
Valentina Beatrice Manfredi	Independent non-executive Director

*In office until the date of the Shareholders' Meeting convened to approve the financial statements at 31 March 2024, appointed by co-option on 8 January 2024, to replace director Francesco Giovagnoni, who had resigned on 5 January 2024.

AUDIT AND RISK COMMITTEE

(holding office for three years until the date of the Shareholders' Meeting called to approve the financial statements at 31 March 2025)

Barbara Falcomer	Chairman
Catia Cesari	Independent non-executive Director
Valentina Beatrice Manfredi	Independent non-executive Director

REMUNERATION COMMITTEE

holding office for three years until the date of the Shareholders' Meeting called to approve the financial statements at 31 March 2025)

Catia Cesari	Chairman
Barbara Falcomer	Independent non-executive Director
Valentina Beatrice Manfredi	Independent non-executive Director

LEAD INDEPENDENT DIRECTOR

Catia Cesari

BOARD OF STATUTORY AUDITORS

(holding office for three years until the approval of the financial statements at 31 March 2025)

Standing auditors

Patrizia Lucia Maria Riva Chairman Giuseppe Fredella Standing Auditor Maria Stefania Sala Standing Auditor

Alternate auditors

Giacomo Passaniti Roberto Scialdone

INDEPENDENT AUDITORS

(holding office for nine years until the approval of the financial statements at 31 March 2025)

Deloitte & Touche S.p.A.

FINANCIAL REPORTING OFFICER Roberto Trotta

SUPERVISORY BOARD

Gerardo Diamanti

THE GROUP STRUCTURE

The chart below shows the structure of the Piquadro Group at 31 March 2024:

INFORMATION ON OPERATIONS

Significant events during the financial year

On 20 July 2023 the Shareholders' Meeting of Piquadro S.p.A. approved the Financial Statements for the financial year ended 31 March 2023, and the distribution of a unit dividend of Euro 0.104115 to the shareholders, for a total amount of approximately Euro 5 million, taking account of the number of Piquadro outstanding ordinary shares, equal to 48,023,522, and of 1,976,478 treasury shares, equal to 3.9530% of its share capital held by Piquadro on that date. The dividend was paid as from 2 August 2023, by detachment of coupon no. 14 on 31 July 2023.

The Ordinary Shareholders' Meeting also approved the Remuneration Report, which describes the Company's Policy concerning the remuneration due to the Directors, Board of Statutory Auditors' members and Key Management members for the financial year that will end on 31 March 2024, in the implementation of the provisions of Article 123-ter, paragraphs no.3-bis and 6, of the TUF (Testo Unico della Finanza, Consolidated Act on Finance), and the fees paid in accordance with the aforesaid Article 123-ter, paragraph 4, of the TUF.

The Shareholders' Meeting has passed a resolution on the authorisation, until the approval of the financial statements at 31 March 2024, concerning the purchase of the Company's ordinary shares, in one or more tranches, up to the maximum number permitted by law, having regard to treasury shares held directly and to those held by subsidiaries.

The purchases may be made, according to Article 2357, paragraph 1, of the Italian Civil Code, within the limits of distributable profits and available reserves resulting from the most recent financial statements as duly approved, with a consequent reduction in equity, pursuant to Article 2357-ter, paragraph 3, of the Italian Civil Code, in the same amount, through the recognition of a specific item with a negative sign among balance sheet liabilities. The purchase, sale, exchange or contribution of shares shall be accompanied by any appropriate accounting record in compliance with the provisions of law and applicable accounting standards. In cases of sale, exchange or contribution, the corresponding amount may be reused for additional purchases, until the expiry of the time limit set out for the authorisation given by the Shareholders' Meeting, without prejudice to any quantitative and expenditure limits, as well as to the terms and conditions laid down by the Shareholders' Meeting.

The purchase price of the shares shall be determined from time to time, having regard to the methods selected to carry out the transaction and in accordance with legislative, regulatory provisions or permitted market practices, within a minimum and maximum limits that can be determined according to the following criteria:

(i) in any case the minimum consideration for the purchase shall not be less, by 20%, than the reference price that the stock shall have recorded on the trading day prior to every individual transaction; (ii) in any case, the maximum consideration for the purchase shall not be higher, by 10%, than the reference price that the stock shall have recorded on the trading day prior to every individual transaction.

Should the purchase of treasury shares be made within the scope of any market practice referred to in CONSOB resolution no. 16839/2009, the purchase price set for any proposed trading shall not exceed the higher of the price set for the most recent independent transaction and the current purchase price of the highest independent proposed trading in the market in which proposed purchases are launched, without prejudice to any additional limit set out in the resolution itself.

The abovementioned transactions shall be carried out, on one or more occasions, by purchasing shares, pursuant to Article 144-bis, paragraph l, letter b, of the Issuers' Regulation, on regulated markets or multilateral trading systems, which do not allow any direct matching of proposed purchase trading with predetermined proposed sales trading, according to operating procedures set out in the regulations governing the organisation and operation of the markets themselves, in compliance with Article 2357 and ff. of the Italian Civil Code, the equality of treatment of shareholders and any applicable legislation, including regulatory provisions, in force, including the principles referred to in Article 132 of the TUF, as well as with Regulation (EU) no. 596/2014 of 16 April 2014 and related implementing provisions, if applicable. The purchases may take place according to procedures other than those specified above pursuant to Article 132, paragraph 3, of Legislative Decree no. 58/1998 or any other provision applicable from time to time on the day of the transaction.

Furthermore, the Shareholders' Meeting approved, without any time limit, and pursuant to and for the purposes of Article 2357-ter of the Italian Civil Code, the disposition, on one or more occasions, of any share that has been purchased according to this resolution or that in any case is already held in the Company's portfolio even well before having reached the maximum amount of shares that can be purchased, and any possible repurchase of the

shares themselves to the extent that the treasury shares held by the Company do not exceed the limit set out in the authorisation.

The consideration for any sale of treasury shares, which will be set by the Board of Directors, with the right of subdelegating powers to one or more Directors, may not be less by 20% at least, than the reference price that the stock shall have recorded on the trading day prior to every individual transaction.

Should the sale of treasury shares be carried out within the scope of the permitted market practices referred to above, without prejudice to any additional limit set out in CONSOB resolution no. 16839/2009, the sales price of any proposed trading shall not be less than the lower of the price of the most recent independent transaction and the current sales price of the lowest independent proposed trading in the market in which proposed sales are launched. Should the treasury shares be the object of trading, exchange, contribution or any other act of non-cash disposition, the financial terms and conditions of the transaction shall be laid down based on its nature and features, while taking account of the market performance of the Piquadro S.p.A. stock.

The disposition of shares may take place according to such procedures as may be considered to be the most appropriate in the interest of the Company, and in any case in compliance with the applicable regulations and permitted market practices; and (c) the decision to grant the Board of Directors and, through the same, any Managing Director, jointly and severally between them, the amplest powers required for the actual and full execution of the resolutions referred to in the points above in compliance with the provisions laid down in Article 132 of the TUF and the disclosure obligations referred to in Article 144-bis, paragraph 3, of the Issuers' Regulation and, if required, the disclosure obligations required by the abovementioned market practices and by Regulation (EU) no. 596/2014 of 16 April 2014 and related implementing provisions, if applicable, with the right to proceed with the purchase and disposition of treasury shares, within the limits of the provisions laid down above, including through specialist intermediaries, also pursuant to and for the purposes of the abovementioned market practice governing operations in support of liquidity permitted by CONSOB under resolution no. 16839 of 19 March 2009 and pursuant to Regulation (EU) no. 596/2014 of 16 April 2014 and related implementing provisions, if applicable.

The Shareholders' Meeting also approved a new Incentive Plan concerning the Stock Grant Plan 2023-2027, which may result in the award of Piquadro S.p.A.'s treasury shares – arising from purchases made in implementation of share buyback plans previously approved by the Company, and/or shares purchased on the market - up to a maximum total number of 2 million shares. On 4 December 2023, the Board of Directors of Piquadro S.p.A., after receiving the favourable opinion of the Remuneration Committee, resolved: (i) to approve the final text of the rules of the incentive plan on the "Stock Grant Plan S.p.A. 2023-2027"; (ii) to grant, in relation to the Vesting Period 2023/2024 (First Vesting Period), rights that, subject to the fulfilment of the conditions set forth in the plan, award a maximum of 237,000 shares of Piquadro S.p.A, out of the 300,000 initially envisaged in connection with the First Vesting Period; as well as (iii) to approve the list of the recipients of the First Vesting Period, the number of rights granted to each of them, and the personal performance targets. The beneficiaries of the new Stock Grant Plan 2023- 2027 were identified by the Board from among executive directors, executives with strategic responsibilities, managers and employees of Piquadro S.p.A., and other Piquadro Group companies. The Board decided not to avail itself of the power to grant all the rights initially provided for in connection with the First Vesting Period 2023/2024, it being understood that the differential of 63,000 rights may be granted later during the current financial year, or in the Second Vesting Period 2024/2025.The expected cost for the Company in connection with the tranche of the Plan for the Vesting Period 2023-2024 is Euro 516,660, of which Euro 77,500 for the financial year 2023/2024, in addition to the administrative charges related to the cashless management of the Plan.

On 8 January 2024, the Board of Directors of Piquadro S.p.A., with the approval of the Board of Statutory Auditors, resolved to appoint, by co-optation, pursuant to Article 2386, first paragraph of the Italian Civil Code, and Article 17.3 of the By-Laws, Mr Tommaso Palmieri as a non-executive director of the Company.

The appointment took place following the resignation on 5 January 2024 by Mr Francesco Giovagnoni, an executive director who had been appointed from the majority list at the ordinary shareholders' meeting on 25 July 2022, to which only one non-elected candidate, Mr Sergio Marchese, belonged who had resigned as a member of the Board of Directors due to the concurrence of additional professional commitments.

After having taken note of the statements made, and the documentation submitted by the new Board member, the Board of Directors took steps, at the same meeting, to establish that Mr Tommaso Palmieri actually met the requirements prescribed by the applicable regulations, the Company's By-Laws, and the Corporate Governance Code for taking office. Mr Tommaso Palmieri will remain in office until the next shareholders' meeting of the Company.

As at 7 June 2024, Piquadro S.p.A. held 2,751,726 of its treasury shares, equal to 5.5035% of the share capital, while its subsidiaries did not hold any share in the Parent Company

The invasion of Ukraine by the Russian Federation, undertaken in February 2022, has given rise to various consequences in economic and financial terms worldwide. This conflict, which is still ongoing, has caused, since the first months of the conflict, high volatility, even in currencies, which has been reduced only partially, and has entailed the issue of targeted restrictive sanctions (individual sanctions against individuals), economic sanctions and diplomatic measures against the Russian Federation on the part of the United States of America, the United Kingdom and the European Union. Among economic sanctions, we must note those regarding the export of luxury goods, in response to which, in the early stages of the invasion, the Piquadro Group suspended logistics and invoicing operations to the Russian subsidiary, both towards DOSs and towards Russian multi-brand customers, which were then regularly resumed, since the scope of these sanctions had not restricted the Group's exports. It is specified that the Group has no suppliers of goods in Russia and Ukraine.

The effects for the Piquadro Group resulting from the conflict include, first and foremost, the direct impact linked to the exchange rate trends, to which the Piquadro Group responded by raising its selling prices to the public in Russia as from the first months of the conflict. Nevertheless, sales of Piquadro Group products were not significantly affected by this situation, in terms of sales volumes, at DOSs.

Among indirect impacts, although there has been a decline in the inflation rate, the population's spending capacity is weakened, reverberating on consumer products, and consequently affecting GDP growth.

In the FY 2023/2024, the Piquadro Group continued its sales to wholesale customers from the Russian Federation, while also keeping any and all directly-operated retail stores open, generating positive results of operations and cash flows. The Piquadro Group's sales in Russia accounted for 2.16% of consolidated sales at 31 March 2024 (2.75% at 31 March 2023).

As of the same date, the assets held by the Group in Russia amounted to about Euro 3.7 million, specifically relating to (i) rights of use pertaining to sales outlets (Euro 1 million), (ii) inventories (Euro 1.2 million), (iii) cash and cash equivalents (Euro 0.3 million), (iv) receivables (Euro 0.6 million), (v) property, plant and equipment (Euro 0.1 million) and (vi) non-current financial assets (Euro 0.1 million).

On the basis of the information available to date, the recoverability of the aforementioned values does not show any critical issue, without prejudice to the normal uncertainty regarding the evolution of the context.

In relation to the volatility of this scenario, our Management continues to monitor the situation in order to safeguard the Piquadro Group's assets, wealth and business continuity, while taking any necessary measure to ensure that its activities are carried out in accordance with applicable regulations.

An armed conflict between Israel and Palestine began on 7 October 2023, which is still ongoing, and which has reinforced the macroeconomic uncertainties already present in the international scenario.

The limited contribution in terms of turnover produced in the territory affected by the conflict, and the absence of suppliers located therein, have had no significant direct impact on the Piquadro Group. Among indirect impacts are difficulties related to maritime transport, which, due to the tensions present in the Suez Canal territories, resulting in circumnavigation of the African continent, has led to slowdowns in the supply chain.

The Piquadro Group's business

The Piquadro Group operates in the leather goods market and designs, manufactures and markets goods under its own brand names (Piquadro, The Bridge and Lancel); these goods are distinguished by a focus on design and on technical and functional innovation, which is then transferred to the manufacture of bags, suitcases and accessories. The flexibility of the business model adopted by the Piquadro Group allows it to maintain control over all of the critical phases of the production and distribution chain. Indeed, the Group carries out the design, planning, production, procurement, quality, marketing, communication and distribution phases wholly within the confines of its organisation and only resorts to outsourcing for a part of the production activities, although it also retains control over the quality and efficiency of the phases that are currently outsourced.

As regards Piquadro-branded products, as of 31 March 2024, part of the small leather goods and of some lines of briefcases, which accounts for about 25.4% of the Piquadro's turnover, were produced internally, through the subsidiary Uni Best Leather Goods Zhongshan Co. Ltd. at the plant located in Zhongshan in the region of Guangdong (People's Republic of China). Production activities, which are partially carried out by companies outside the Piquadro Group for Piquadro, The Bridge and Lancel- branded products, are outsourced to external suppliers of proven competence and quality, mainly located in China, Hong Kong, Italy, India, the Czech Republic and Bulgaria. This activity is carried out on the basis of prototypes that are engineered and supplied by the Piquadro Group, whose own employees then carry out direct checks of the quality of the manufactured products.

The products are sold through a network of specialist stores that are able to enhance the prestige of the three Piquadro, The Bridge and Lancel brands. For this purpose, the Piquadro Group makes use of a distribution network focused on two channels:

(i) a direct channel which, at 31 March 2024, included 131 directly operated single-brand stores (Directly Operated Stores or DOSs), of which 50 Piquadro-brand stores, 12 The Bridge-brand stores and 69 Lancel-brand stores, in addition to the e-commerce websites of the three brands;
(ii) an indirect channel (Wholesale), which is made up of multi-brand shops/department stores, singlebrand shops run by third parties linked to the Group by franchise agreements (44 shops at 31 March 2024, of which 38 Piquadro-brand stores, 2 The Bridge-brand stores and 4 Lancel-brand stores) and by distributors who then resell the articles in specialist multi-brand shops.

In the financial year ended 31 March 2024, about 45.2% of the Piquadro Group's consolidated revenues were achieved by Piquadro-branded products (43.4% in the previous year), 35.9% % through the sale of Lancel-branded products (38.9% in the previous year) and 18.9% through the sale of The Bridge-branded products (17.7% in the previous year).

Operations

Sales volumes, in terms of quantities sold during the financial year ended 31 March 2024, were equal to about 1,765 thousand units, up by about 4.7% compared to the value posted in the financial year ended 31 March 2023 (about 1,686 thousand units sold). As regards average selling prices, the financial year ended 31 March 2024 reported a decrease equal to about 1.9% compared to the previous year, including the mix effect.

Revenues from sales

In the financial year ended 31 March 2024 the Piquadro Group's revenues from sales increased by 2.7% compared to FY 2022/2023. The Piquadro Group, in fact, recorded net revenues from sales equal to Euro 180,269 compared to Euro 175,595 thousand reported in the previous year.

Following the acquisition of the Lancel division, the Piquadro Group's Top Management staff review results of operations obtained by each brand (Piquadro, The Bridge, Lancel) in operational terms; accordingly, the disclosures according to IFRS 8 concerning the Piquadro Group's revenues from sales are now reported on a brand basis.

The breakdowns of revenues by brand and geographical area are reported below.

Breakdown of revenues by brand

The table below reports the breakdown of consolidated revenues from sales by brand, expressed in thousands of Euro, for the financial year ended 31 March 2024 and compared to the financial year ended 31 March 2023:

	Revenues from sales		Revenues from		%
(in thousands of Euro)	at 31 March 2024	%(*)	sales at 31 March 2023	%(*)	Change 2024/2023
PIQUADRO	81,492	45.2%	76,235	43.4%	6.9%
THE BRIDGE	34,124	18.9%	31,023	17.7%	10.0%
LANCEL	64,653	35.9%	68,338	38.9%	-5.4%
Total	180,269	100.0%	175,595	100.0%	2.7%

(*) Percentage impact compared to revenues from sales

With reference to the Piquadro brand, revenues reported in the FY 2023/2024 ended 31 March 2024 amounted to Euro 81.5 million, up by 6.9% compared to the same period ended 31 March 2023 (+8.3% at constant exchange rates). Sales showed an increase of 12.4% in the Wholesale channel and of 3.4% in the DOS channel (+7.2% at constant exchange rates).

With reference to The Bridge brand, revenues reported in the FY 2023/2024 ended 31 March 2024 amounted to Euro 34.1 million, up by 10.0% compared to the same period ended 31 March 2023. Sales showed an increase of 11.5% in the Wholesale channel and of 13.2% in the DOS channel.

The Maison Lancel-branded product's revenues from sales during the FY 2023/2024 ended 31 March 2024 amounted to Euro 64.7 million, down by (5.4)% compared to the same period ended 31 March 2023, including the effect of exchange rate fluctuations (-4.6% at constant exchange rates). The performance recorded by the Lancel brand was affected by the particular situation on the domestic market, which was impacted, particularly in the first

quarter of the year, by protests in France, a market where the Maison achieves about 90% of its sales for the year, as well as by the closure of some stores (with an impact of about 2.7% on total sales).

The strategy planned by the Piquadro Group is aimed at also developing sales activities through the DOS shops in view of the capacity to maximise the prestige of the Piquadro, The Bridge and Lancel brands, in addition to allowing distribution to be controlled more directly and greater attention to be paid to satisfying the end consumer.

Breakdown of revenues by geographical area

(in thousands of Euro)	Revenues from sales at 31 March 2024	%(*)	Revenues from sales at 31 March 2023	%(*)	% Change 2024/2023
Italy	86,112	47.8%	80,641	45.9%	6.8%
Europe	87,030	48.3%	89,047	50.7%	-2.3%
Rest of the World	7,127	4.0%	5,907	3.4%	20.6%
Total	180,269	100.0%	175,595	100.0%	2.7%

The table below reports the breakdown of net revenues by geographical area (in thousands of Euro):

(*) Percentage impact compared to revenues from sales

From a geographical point of view, the Piquadro Group recorded sales of Euro 86.1 million on the Italian market, equal to 47.8% of the Group's total turnover at 31 March 2024 (45.9% of consolidated sales at 31 March 2023), up by 6.8% compared to the same period of the FY 2022/2023.

In the European market, the Piquadro Group recorded a turnover of Euro 87.0 million, equal to 48.3% of consolidated sales (50.7% of consolidated sales at 31 March 2023), down by 2.3% compared to the same period of the FY 2022/2023 (–0.6% at constant exchange rates).

In the non-European geographical area (named "Rest of the World"), the Piquadro Group recorded a turnover of Euro 7.1 million, up by 20.6% compared to the same period of the FY 2022/2023 (+23.2% at constant exchange rates), and equal to 4.0% of consolidated sales.

In the financial statements at 31 March 2023, the performance of the Piquadro Group's profitability was positively affected by the growth in turnover of all three brands and especially by the positive performance recorded by the Piquadro and The Bridge brands.

The Piquadro Group's operating result at 31 March 2024 posted a profit of Euro 14,833 thousand, showing an improvement of about Euro 2,966 thousand compared to the financial year ended 31 March 2023.

In the opinion of the Management, the performance of the operating result, compared to the previous year, was mainly connected with the trends relating to growth in turnover.

The Piquadro Group's adjusted operating result (adjusted EBIT) at 31 March 2024, which is calculated excluding the effects arising from the adoption of IFRS 16, posted a profit of Euro 13,517 thousand, showing an improvement of about Euro 2,690 thousand compared to the financial year ended 31 March 2023.

Economic and financial highlights and alternative performance indicators

The Piquadro Group uses the Alternative Performance Indicators (APIs) in order to provide information on the performance of profitability of the businesses in which it operates, as well as on its own financial position and results of operations, in a more effective manner. In accordance with the guidelines published by the European Securities and Markets Authority (ESMA/2015/1415) on 5 October 2015 and consistently with the CONSOB (Italian Securities and Exchange Commission) notice no. 92543 of 3 December 2015, the content and the criterion to determine the APIs used in these financial statements are described below:

• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation, or Gross Operating Margin) is an economic indicator that is not defined by the International Accounting Standards. EBITDA is a unit of measurement utilised by the Management to monitor and assess the Group's operational performance. The Management believes that EBITDA is an important parameter for the measurement of the Piquadro Group's performance, as it is not affected by the volatility due to the effects of the various criteria for the

determination of taxable income, by the amount and characteristics of the capital employed, as well as by the amortisation and depreciation policies. EBITDA is defined as the earnings for the period before depreciation of property, plant and equipment and amortisation of intangible assets, financial income and costs and the income taxes for the period.

Adjusted EBITDA is defined as EBITDA, excluding the effects arising from the adoption of IFRS 16.
EBIT (Earnings Before Interest and Taxes) consists of the Earnings for the period before financial income and costs and income taxes.
Adjusted EBIT is defined as EBIT, excluding the effects arising from the adoption of IFRS 16.
The Net Financial Position ("NFP"), utilised as a financial indicator of borrowing, is represented as the sum of the following positive and negative components of the Statement of Financial Position, as required by the CONSOB Call for attention notice no. 5/21 of 29 April 2021. Positive components: cash and cash equivalents, liquid securities under current assets, short-term financial receivables. Negative components: payables to banks, payables to other lenders, leasing and factoring Companies, non-current portion of trade payables and other payables.
Adjusted Net Financial Position (Adjusted NFP) is defined as the Net Financial Position, excluding the effects arising from the adoption of IFRS 16.
The ROI, i.e. the return on net invested capital, is given by the ratio of net Operating Margin to net invested capital and is expressed as a percentage. This indicator is used as a financial target in both internal (business plans) and external (analysts and investors) presentations and intends to measure the ability to produce wealth through operations and therefore to remunerate both net worth and borrowed capital.
The ROE, i.e. the return on equity, is given by the ratio of net profit to equity and is expressed as a percentage. This indicator is used as a financial target in both internal (business plans) and external (analysts and investors) presentations and intends to measure the profitability obtained by investors on account of risks.
The ROS, i.e. the average operating result by revenue unit. This ratio expresses the Company's profitability in relation to the revenue flow's ability to generate remuneration.
Net Working Capital: this item includes "Trade receivables", "Inventories", current non-financial "Other Receivables", net of "Trade payables" and current non-financial "Other Payables".
The cash flow is given by cash flows from operating activities (operating cash flow), net of distributed dividends. The operating cash flow is calculated on the basis of the gross operating margin, to which must be added the changes in net working capital, net of increases in the provision for bad debts, the uses of the provisions for risks and the Employee Severance Pay, operating and financial investments, financial income and costs and taxes. This indicator is used as a financial target in both internal (business plans) and external (analysts and investors) presentations and intends to measure the Company's ability to generate cash and therefore its ability to self-finance its operations.

Below are reported the Piquadro Group's main economic-financial indicators at 31 March 2024:

	31 March	31 March
(in thousands of Euro)	2024	2023
Revenues from sales	180,269	175,595
EBITDA	31,987	27,751
Adjusted EBITDA	19,622	15,379
EBIT	14,833	11,867
Adjusted EBIT	13,517	10,827
Profit (loss) before tax	14,559	11,345
Profit (loss) for the period (including third parties)	10,528	6,502
Amortisation and depreciation of fixed assets and write-downs of receivables	18,001	16,559
Generation of financial resources (Group net profit (loss), amortisation and depreciation, write-downs)	28,529	23,061
Adjusted Net Financial Position	16,817	22,786
Net Financial Position	(23,774)	(18,307)
Shareholders' Equity	64,715	61,059

Below is a restatement of the results of operations, which is aimed at representing the performance of the operating profitability indicator EBITDA:

EBITDA (in thousands of Euro)	31 March 2024	31 March 2023
Operating profit (loss)	14,833	11,867
Amortisation, depreciation and write-downs	18,001	16,559
EBITDA	31,987	27,751
Adjusted EBITDA	19,622	15,379

EBITDA for the year came to Euro 31,987 thousand against Euro 27,751 thousand recorded in the financial year ended 31 March 2023.

Adjusted EBITDA, which is defined as EBITDA, gross of impacts arising from the adoption of IFRS 16, amounted to Euro 19,622 thousand against Euro 15,379 thousand recorded at 31 March 2023.

The Piquadro brand's Adjusted EBITDA in the financial year ended 31 March 2024 amounted to Euro 14.6 million, showing an increase of Euro 2.4 million compared to the same value posted in March 2023; The Bridge brand's Adjusted EBITDA amounted to Euro 5.6 million in the financial year ended 31 March 2023, showing an increase of about Euro 1.1 million compared to the same value posted in March 2023; Lancel's Adjusted EBITDA posted a loss of Euro (0.6) million in the financial year ended 31 March 2024, showing an increase of Euro 0.8 million compared to Euro (1.4) million at 31 March 2023.

The Piquadro Group's amortisation and depreciation were equal to Euro 18,001 thousand in the financial year ended 31 March 2024 (Euro 16,559 thousand in the financial year ended 31 March 2023) and related to intangible assets for Euro 1,655 thousand, to property, plant and equipment for Euro 3,256 thousand and to right-of-use assets arising from the adoption of the IFRS 16 for Euro 11,247 thousand.

Net write-downs, equal to Euro 1,843 thousand, were made up of the write-down of receivables stated among current assets for Euro 847 thousand, and impairment of assets relating to Lancel Sogedi stores for Euro 997 thousand.

Financial ratios (in thousands of Euro)	31/03/2024	31/03/2023
EBIT	14,833	11,867
Adjusted EBIT	13,517	10,827

Following the adoption of IFRS 16, the Piquadro Group recorded positive EBIT of about Euro 14.8 million in the financial year ended 31 March 2024, showing an improvement of about Euro 2.9 million compared to Euro 11.9 million recorded in the financial year ended 31 March 2023.

Adjusted EBIT, defined as EBIT, gross of impacts arising from the adoption of IFRS 16 and the related write-down due to impairment, posted a positive value of Euro 13.5 million, showing an improvement of about Euro 2.7 million compared to Euro 10.8 million recorded in the financial year ended 31 March 2023.

The result from financial operations, which posted costs of Euro 274 thousand (against costs of Euro 522 thousand at 31 March 2023), was mainly affected by the impact arising from the adoption of IFRS 16 for costs of Euro 937 thousand (Euro 1,076 thousand at 31 March 2023), interest income on current accounts for Euro 643 thousand (Euro 102 thousand at 31 March 2023), interest expense on current accounts for Euro 107 thousand (Euro 93 thousand at 31 March 2023), interest expenses on loans for Euro 254 thousand (Euro 238 thousand at 31 March 2023), and foreign exchange losses of Euro 570 thousand (Euro 844 thousand at 31 March 2023), which were more than offset by foreign exchange gains of Euro 648 thousand (Euro 1,464 thousand at 31 March 2023).

Below is a restatement of the results of operations, which is aimed at representing the performance of the Group's net profit (loss):

Financial ratios (in thousands of Euro)	31/03/2024	31/03/2023
Net profit (loss) for the year (including minority interests)	10,528	6,502

The Piquadro Group recorded, in the financial year ended 31 March 2024, a Net Group Profit of about Euro 10.5 million, showing an improvement of about Euro 4.0 million compared to the same value posted in March 2023.

Profitability ratios

Below are reported the main profitability ratios relating to the financial years ended 31 March 2024 and 31 March 2023:

Profitability ratios	Composition of the ratio	31 March 2024	31 March 2023
Return on sales (R.O.S.)	EBIT/Net revenues from sales	8.3%	6.8%
Return on Investment (R.O.I.)	EBIT/Net invested capital	16.8%	15.0%
Return on Equity (R.O.E.)	Profit for the year/Equity	16.3%	10.6%

Investments

Investments in intangible assets, property, plant and equipment and non-current financial assets in the financial year ended 31 March 2024 came to Euro 3,399 thousand (Euro 3,331 thousand at 31 March 2023), as reported below:

(in thousands of Euro)	31 March 2024	31 March 2023
Investments
Intangible assets	632	851
Property, plant and equipment	2,766	2,480
Non-current financial assets	0	0
Total	3,399	3,331

Increases in intangible assets, equal to Euro 632 thousand in the financial year ended 31 March 2024 (Euro 851 thousand at 31 March 2023), related for Euro 161 thousand to the progress of work on the project concerning the new operational software in The Bridge for inventory accounting management, for Euro 125 thousand to the implementation of the new e-commerce site of Piquadro S.p.A., and for the remaining amount to the purchase or renewal of software, licenses and trademarks for the other Piquadro Group brands. The share of fixed assets under development includes advances for the development of the e-commerce platform of Piquadro S.p.A.

Increases in property, plant and equipment, equal to Euro 2,766 thousand in the financial year ended 31 March 2024 (Euro 2,480 thousand at 31 March 2023) were mainly attributable to furniture and furnishings purchased for new DOSs opened in the period under consideration, and the refurbishment of some existing shops for Euro 1,964 thousand, and to purchases of workshop plant and machinery for Euro 421 thousand.

Capital structure

Below is summarised the Piquadro Group's consolidated capital and financial structure:

(in thousands of Euro)	31 March 2024	31 March 2023

Trade receivables	36,108	28,251
Inventories	37,255	37,428
(Trade payables)	(35,533)	(36,233)
Total net current trade assets	37,830	29,446
Other current assets	7,995	6,815
Tax receivables	898	1,301
(Other current liabilities)	(11,305)	(12,137)
(Tax payables)	(3,065)	(3,980)

A) Working capital	32,353	21,445
Intangible assets	6,352	7,143
Property, plant and equipment	12,447	13,854
Right-of-use assets	37,996	38,364
Non-current financial assets	2	2
Receivables from others due beyond 12 months	1,770	1,903
Deferred tax assets	3,637	3,260
B) Fixed assets	62,204	64,526
C) Non-current provisions and non-financial liabilities	(6,067)	(6,605)
Net invested capital (A+B+C)	88,490	79,366
FINANCED BY:
D) Net Financial Position	23,774	18,307
E) Equity attributable to minority interests	0	0
F) Equity attributable to the Group	64,716	61,059
Total borrowings and Shareholders' Equity (D+E+F)	88,490	79,366

Net Financial Position

The table below reports the breakdown of the Net Financial Position determined according to the ESMA criteria (based on the schedule set out in CONSOB Call for attention notice no. 5/21 of 29 April 2021):

(in thousands of Euro)	31 March 2024	31 March 2023
(A) Cash	35,093	52,935
(B) Cash equivalents	0	0
(C) Other current financial assets	392	808
(D) Liquidity (A) + (B) + (C)	35,485	53,743
(E) Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt)	(20,983)	(17,225)
(F) Current portion of non-current financial debt	(9,708)	(12,921)
(G) Current financial debt (E) + (F)	(30,691)	(30,146)
(H) Current Net Financial Position (G) - (D)	4,794	23,597
(I) Non-current financial debt (excluding current portion and debt instruments)	(25,337)	(38,267)
(J) Debt instruments		0
(K) Trade payables and other non-current payables	(3,231)	(3,637)
(L) Non-current Net Financial Position (I) + (J) + (K)	(28,568)	(41,904)
(M) Total Net Financial Position (H) + (L)	(23,774)	(18,307)

"Financial debt", equal to Euro 30,691 thousand (current portion) and Euro 28,568 thousand (non-current portion), included financial liabilities for short/long-term lease agreements equal to Euro 20,983 thousand and Euro 19,608 thousand, respectively.

"Trade payables and other non-current payables" included the fair value of "Earn Out" to be paid to Richemont Holdings SA against the purchase of the stake representing the entire capital of Lancel International SA.

The Piquadro Group's Net Financial Position posted a negative value of Euro 23.8 million in the financial year ended 31 March 2024. The adverse impact of the adoption of IFRS 16 was equal to about Euro 40.6 million.

The Piquadro Group's Adjusted Net Financial Position posted a positive value of about Euro 16.8 million compared to a positive value of Euro 22.8 million of the adjusted Net Financial Position recorded at 31 March 2023.

The change in the adjusted Net Financial Position was due to the absorption of financial resources arising from i) investments in intangible assets, property, plant and equipment and non-current financial assets for about Euro 3.4 million, ii) the purchase of treasury shares for about Euro 1.1 million, iii) the payment of dividends from the Parent Company for Euro 5 million, mainly financed by free cash inflows, net of tax, equal to about Euro 15.5 million.

Reconciliation of the Parent Company's Shareholders' Equity and profit (loss) for the year and the corresponding consolidated values

Below is the statement of reconciliation of the Shareholders' Equity and the profit (loss) for the year resulting from the financial statements of the Parent Company and the corresponding consolidated values at 31 March 2024:

(in thousands of Euro)	Profit/(loss ) at 31 March 2024	Equity at 31 March 2024	Profit/(loss ) at 31 March 2023	Equity at 31 March 2023
Equity and profit (loss) for the year as reported in the financial statements of	10,672	49,936	7,737	45,498
Piquadro S.p.A. Derecognition of the book value of consolidated equity investments	3	(24,454 )	(1,619)	(24,457 )
Non-recurring income associated with the acquisition of the Lancel Group, net of transaction costs	0	40,752	0	40,752
Dividends	0	0	0	0
Derecognition of the effects of transactions effected between consolidated Companies:				0
-Profits included in closing inventories	88	(1,604)	73	(1,692)
-Other minor items	(234)	85	311	959
Equity and Profit/(Loss) for the year attributable to the Group	10,529	64,715	6,502	61,059
Profits (Losses) and Equity attributable to minority interests	0	0	0	0
Equity and consolidated Profit	10,529	64,715	6,502	61,059

Human Resources

The products that the Piquadro Group offers are conceived, manufactured and distributed according to the guidelines of an organisational model whose feature is that it monitors all the most critical phases of the chain, from conception and manufacturing to subsequent distribution. This entails great care with the correct management of human resources, which, while respecting the different local environments in which the Piquadro Group operates, must necessarily lead to intense personal involvement, above all in what the Group considers the strategic phases for the success of the brands.

As at 31 March 2024 the Piquadro Group had 1,039 members of staff, showing a change in composition but not in total units, compared to 31 March 2023.

Below is the breakdown of staff by Country:

Country	31 March 2024	31 March 2023
Italy	424	404
France	301	314
China	229	240
Russia	40	42
Spain	15	17
Taiwan	16	12
San Marino	3	4

1,039	1,039
	7 1 3	4 1 1

With reference to the Piquadro Group's organisational structure, at 31 March 2024, 13.7% of staff operated in the Production area, 53.9% in the Retail area, 20.0% in the support functions (Administration, IT Systems, Procurement, Human Resources, Marketing, etc.), 6.9% in the Research and Development area and 5.5% in the Sales area.

Environmental responsibility and the fight against climate change

As referred to by the Piquadro Group Code of Ethics, the environment is considered a primary asset of the community that the Piquadro Group itself intends to help safeguard.

The Piquadro Group's environmental responsibility is assumed through five areas of action: i) sustainable management of supply chain; ii) responsible consumption of materials; iii) energy consumption management; iv) containment of CO2 emissions; and v) waste management.

The Piquadro Group is therefore committed to pursuing sustainable management of its supply chain,since it adopted a Code of conduct for suppliers from the financial year ended 31 March 2023. The Piquadro Group is focused on an ongoing search for the most suitable solutions to ensure responsible use of resources, a reduction in energy consumption and an improved management of emissions into the atmosphere through the continuous improvement of eco-efficiency levels and the use of energy from renewable sources. The Piquadro Group also engages in raising awareness and communication activities regarding energy and environmental issues.

The Piquadro Group has put in place a process to identify and assess risks associated with climate change, which it intends to refine in future years, while also considering any potential impact on its main operating units and supply chain. This process is instrumental in identifying physical risks, transition risks, and opportunities linked to the sector and business characteristics of the Group.

The Piquadro Group takes a new, decisive step in its path to sustainability and announces carbon neutrality for the entire Group (Scopes 1 and 2) as from the FY 2022/2023, after having undertaken projects such as a gradual use of recycled materials, leathers from certified supply chain and the project to support the community of its mountains.

In fact, the Piquadro Group has been offsetting its carbon footprint by considering any and all direct (Scope 1) and indirect emissions from purchased electricity (market-based Scope 2) generated during the FY 2022/2023 (offsetting does not consider any indirect Scope 3 emissions).

The goal of offsetting the 1,784 tons of CO2eq produced by the Group companies was achieved through certified carbon credits generated through the reforestation of severely degraded areas in the Cerrado region in Brazil, a tropical forest characterised by some of the highest biodiversity in the world, or the project to prevent deforestation of Rio Anapu Pacaja.

"Carbon credits" or offset certificates are one of the tools through which it is possible to mitigate the effects of the carbon footprint represented by the production of global CO2, among the main causes of climate change. A carbon credit is equivalent to one ton of CO2 avoided or taken from the atmosphere through the development of certified projects, including forestry projects that not only capture atmospheric CO2, thanks to the chlorophyll photosynthesis of plants, but also contribute to the benefit of biodiversity and the local community.

At the same time as offsetting the carbon footprint related to company activities, the Piquadro Group has made another important commitment to environmental sustainability: in fact, during 2023, it gradually began offsetting CO2 emissions deriving from the production of some of its best-selling products. Specifically, about 40 products have been identified for Piquadro and The Bridge among the best-selling lines and the carbon footprint of each has been calculated with the aim of offsetting it through the purchase of additional certified carbon credits.

Corporate social responsibility

The Piquadro Group has been committed to corporate social responsibility starting from 2010, when the Parent Company started its first solidarity initiative in support of local areas, the "Happy Box" project implemented in cooperation with the Palmieri Family Foundation established by Marco Palmieri, Chairman of Piquadro, and by his wife Beatrice in order to give continuity to their philanthropic activity through the enhancement of diversities. As an acknowledgment of its value to local areas, the project obtained the Sponsorship of the Municipality of Bologna. Despite the context of geopolitical and economic volatility, the Piquadro Group continued with determination the ESG processes by continuing to grow in the culture of eco-sustainable design, since it is aware that a product is manufactured environmentally friendly and the conception phase is decisive for compliance with certain parameters. We must note, for example, the increasingly widespread use of the PQ Circle Index to measure the amount of recycled product used, which has become a design target; likewise, principles and standards of reparability are entering the design logic and contribute to lengthening the life cycles of Piquadro's products. The Piquadro Group has always been inspired by the values of integrity, fairness and transparency, as well as a passion for work, quality and production. This commitment substantiates in initiatives for the enhancement of diversity and inclusion, actions to protect the environment, energy efficiency, reduction of emissions and use of natural resources, as well as in projects in favour of local areas and the community of its mountains.

Piquadro is proud to support the community of its mountains by promoting economic and social development through sustainable tourism open to diversity and respect for the environment.

Health and safety

For the Piquadro Group, safety and working environments are protected by complying with the regulations in force in the individual countries. The Piquadro Group aims to ensure the physical and moral integrity of its own in-house employees and collaborators, offering working conditions that respect the personal dignity in a safe and healthy workplace, in full compliance with the current regulations governing the prevention of accidents at work and the protection of workers. During the financial year ended 31 March 2024, the Italian companies continued their path to the implementation of an increasingly accurate system of measures aimed at improving safety at work on an ongoing basis, while increasingly involving employees in forms of active collaboration, which is also aimed at reporting any critical issue related to safety and near-misses.

Piquadro believes that the desired benefits can be multiplied only through the implementation of a shared system and the main tool to achieve these objectives lies in the compliance by the entire workforce with the safety policies adopted. Therefore, the Company is committed to spreading a well-established safety culture, among all its inhouse workers and collaborators, while developing risk awareness and promoting a responsible behaviour on the part of its personnel, which cannot disregard the freedom of expression and the sharing of contents between workers and directly-responsible staff. Furthermore, the Group's Code of Ethics requires the commitment of all collaborators in order to give their contribution to risk prevention and the protection of their own health and safety, as well as of that of their colleagues and third parties, without prejudice to the individual responsibilities pursuant to the provisions of law governing the matter. For this purpose, it calls for a general absolute prohibition, within the scope of the Company's activities, on the abuse of alcohol or the use of drugs, as well as the prohibition on smoking at work, in compliance with the provisions of law and in any case wherever smoking might entail a danger to the Company's facilities and assets or to the health or safety of colleagues and third parties. Any misconduct that could be generated from an improper performance of other duties or tasks is avoided by carefully checking the tasks assigned on a daily basis. The system implemented by the Italian Piquadro Group companies also considers the risks of interference that can arise inside the points of sales and, in this regard, training course requirements have been also met within the retail system.

RESEARCH AND DEVELOPMENT ACTIVITY

The Piquadro Group's Research and Development activity, which is structured into its three distinguishing brands (Piquadro, The Bridge and Lancel) is carried out in house through a dedicated team that currently consists of 72 persons mainly engaged in the product Research and Development department and the style office at the Group's various head offices.

The plants of the Chinese subsidiary Uni Best Leather Goods Zhongshan Co. Ltd. employ a team of 20 people dedicated to the creation of prototypes and the implementation of new models according to the instructions defined by the central organisation.

The R&D work and the design of the Piquadro Group product are performed in-house and occasionally in collaboration with outside industrial designers, taking account of the information regarding market trends supplied by the Group's internal departments (Product Marketing and Sales Departments). In this manner, the Piquadro Group develops its collections trying to meet the needs of end customers that are not yet satisfied by the market.

The internal unit dedicated to the design of products manages operating activities and also coordinates the external consultants of which the Piquadro Group makes use. In some cases, in fact, the Piquadro Group uses external designers for both the product design and the development phase, particularly for the Travel business segment.

As from the financial year ended 31 March 2021, the study and design of Piquadro's articles have increasingly focused on finding solutions that meet the needs of those who move fluidly to different occasions of use during the same day and therefore need containers that can adapt and/or transform. Piquadro has therefore focused its research and development in the creation of modular items, a key design approach to obtaining products that can be transformed, adapted and can perform in different contexts.

During the financial year ended 31 March 2024, the design of Piquadro items was increasingly focused on researching and developing solutions that meet the needs of business travellers, vacationers, and everyday travellers.

Modularity, performance, and making travel agile have been the goals that have guided Piquadro's design activities and have been especially evident in the development of the Corner Viaggio collection.

The trolleys in this collection are recognisable by their rubber corners, and are particularly distinctive because of the modularity feature that allows them to be attached to one another.

This special feature allows multiple items to be carried with one hand while leaving the other hand free, thus facilitating travellers. The modularity function has been enabled by the study, development and implementation of an attachment system based on the anodised aluminium carabiner that characterises the collection. When needed, this docking system also becomes an address tag. The trolleys connected in this manner are also secured by the hooks provided on the sides of the items. Attention to making travel easier was also focused on the study of the CA6392FX modular accessory that customers can place on their rigid suitcase, thus equipping it with multiple, functional pockets. When needed, the customer can take the item off the trolley, recompose the two compartments by using the appropriate zipper, and use it as a backpack by pulling out the removable shoulder straps. This convertible item belongs to the FX collection, which is distinguished by the multiple functions that have been designed and implemented. Above all, the backpacks belonging to this collection are characterised by the special facade to which the camouflage elastic band can be attached, which is equipped with slots to which a specific leather clutch bag can be attached. This clutch bag is equipped with a magnetic security closure that allows it to be securely attached to the backpack, or worn on the belt. During the financial year ended March 2023, Piquadro's design and development also focused on creating a system of personalisation by means of a metal plaque on which a personalised leather item with the customer's initials can be applied. Some collections are originally equipped with this plaque while others include a provision for applying it.

Great attention and research was also devoted to the development of travel backpacks, which, in addition to meeting the size requirements imposed by the various airlines, are equipped with features to hold both clothing, and documents and technological devices. Continuity was also given to the development of leather goods items designed for the working and travelling woman. In particular, work was developed on matching with travel items and sneakers.

In the FY 2023/2024, too, Piquadro continued to place environmental attention and sensitivity as can be seen by the increase in the number of products whose CO2 emitted to produce them is offset.

In the field of clothing, work continued on collaborating with Facib, with which the SS24 collection had been developed, which is characterised by the performance it offers in terms of breathability, and water and wind resistance.

Each Piquadro product in the PQ-BIOS collection is equipped with a tag that features the PQ-Recycled Index, an index designed by Piquadro to represent to the ratio between the weight of recycled material used in that product and the total weight of the material used to make it.

Even the packaging and merchandising of the product are made of recyclable materials: paper, which has FSC (Forest Stewardship Council®) certification attesting to its origin from responsibly managed forests or sources, the ecological soy-based inks and finally recycled cotton for the rope of bag handles.

The Research and Development activity involving The Bridge brand is carried out by a dedicated team of subsidiary The Bridge S.p.A. The Bridge-branded products are the result of a combination of craftsmanship and continuous study of design and new functionalities and by drawing on the products of the past. The Company has always operated a real handicraft laboratory at which prototypes are created. A team of designers is responsible for creating new collections for each season, interpreting the needs of the market and the corporate DNA. The collections are the result of a research work that commences long before creating the products from an analysis of trends, which are then substantiated in materials and colours chosen for the season. The proposals are considered together with the sales force, in order to meet functionality and modernity requirements that make the product attractive to an attentive and demanding public.

During the year, various perimeter products that are very important to business development were developed, such as scarves, gloves and belts.

R&D work involving the Lancel-branded products is performed by a dedicated team of 11 specialists at the Paris office of the Company. The Lancel Group is known for innovation and creativity: the team develops all components and finished products together with the design team. Lancel-branded products are the result of the combination of its own archives, continuous study of design and the expertise in leather goods, including with the help of the Atelier team, operating at Lancel's headquarters, made up of "compagnon du devoir" craftsmen who produce the prototype of the new models. All leathers are carefully selected by the Design department and, with the help of a leather specialist. Each leather colour is defined by Design and developed only for Lancel. The team of specialists dedicated to product research and development studies and proposes new materials on an ongoing basis, such as iconic fabrics, fabrics derived from recycled raw materials, exotic fabrics, and injected plastic with a glitter or marble effect.

The archives of Maison Lancel, in their size and richness, consist of some 3,500 leather goods, small leather goods, luggage, 1,200 pieces of art, 300 sketches and paper patterns, and contribute to the brand's image and influence, embodying in "Parisian elegance" the four universes: women's, men's, travel, and gift art.

RELATED-PARTY TRANSACTIONS

The "Regulation bearing provisions governing related-party transactions" was adopted by CONSOB Resolution no. 17221 of 12 March 2010, as amended by CONSOB resolution no. 17389 of 23 June 2010 and, finally, by CONSOB Resolution no. 21624 of 10 December 2020. On 15 June 2021 the Board of Directors of Piquadro S.p.A. adopted the new procedure concerning related-party transactions, which was also drawn up by taking account of the instructions provided by CONSOB for the application of the new regulations by resolution no. 21624 of 10 December 2020.

The said procedure, which is published on the website of Piquadro (www.piquadro.com), has the purpose to determine the criteria to be complied with for the approval of the transactions with related parties to be effected by Piquadro or its subsidiaries, in order to ensure transparency, as well as the material and procedural correctness of the transactions themselves. The identification of transactions with related parties is made as required by the CONSOB regulation referred to.

Relations with related parties are largely commented on in the consolidated financial statements, in the separate financial statements and in the Notes to the Financial Statements.

REPORT ON OPERATIONS OF PIQUADRO S.p.A. AT 31 MARCH 2024

In reporting the performance of the Piquadro Group, the main events were already implicitly illustrated in relation to the Parent Company whose revenues from the separate financial statements, including relations with Piquadro Group companies, account for about 43.8% of consolidated revenues.